Statement of Scope and Goals
Kudler Fine Foods would like to develop a Frequent Shopper Program to track the purchases of their customers. As the purchases of a customer are tracked, they will accumulate loyalty points. A customer can redeem their points for gift items, specialty foods and other products or services. Although Kudler will partner with external companies to supply some of the gift items and services, IT will be required to develop a system that will record the information of each customer’s purchases and track the amount of accumulated points. This will need to be a system that is available at each of the individual stores. Sales clerks will need to have the ability to access this information so that when a customer wishes to redeem points on items that are in the store the sales clerk will have the needed information. The system will also need to have the ability to update the information immediately. This will allow a customer to make a purchase and immediately have the points just earned available for redemption. Kudler currently has “Customer,” “Order,” and “Order Line” databases. They will need to add a database to track the redemption points. The new system will need the ability to communicate and write to the four databases mentioned above. Goals
This new system will give Kudler customers the ability to redeem their loyalty points for high end gift items, airline first-class upgrades, or other specialty foods. The result will be more loyal customers shopping at Kudler Fine Foods. Summary of Projected Feasibility
Kathy Kudler was the Vice-President of Marketing for a large defense contractor. Weary of the constant travel and the pressures of corporate life, Kathy was looking for other opportunities. Kathy developed a business plan, obtained financing and six months later, on June 18, 1998, the first Kudler Fine Foods opened. Within the next nine months the store was at break-even and was profitable for the year. In 2000, and second store was opened in the Del Mar and in 2003 the third shop was opened in Encinitas. Kudler Fine Foods has experienced significant growth. Kudler Fine Food current assets and liabilities total $2,675,250. In order for Kudler to remain competitive in the domestic and imported food industry it should offer its consumers notable incentives for shopping with them and by doing so more loyalty for the public will grow instantly. One incentive plan that is now being incorporated is the expansion on their services. Kudler is offering parties in the store to show customers how to prepare specialty foods. The draw for the consumers is to be trained by world-renowned chefs, local celebrities, other foods experts, and even Kathy Kudler, and to be invited to exclusive, upscale events. Advertising to the public through the radio, television, and through the use of the worldwide web of this expansion service would increase the projected revenue by 7.50%. According to John Chesak “Director, Retail Product Management” and Jim Dippold, “V.P. Marketing” to compete, many retailers have looked to various forms of customer loyalty marketing to develop a “profitable differentiation,” strategy to identify, monitor and increase the yield of their best customers. Frequent shopper programs in the U.S. are reaching their saturation point. Slightly more than 80% of U.S households participate in a frequent shopper program. By promoting a frequent shopper program, Kudler Fine Foods projected revenues will increase by 4.75%. The bottom line is that in order to remain competitive in the food industry it will require the owner to remain loyal to the customers by any means necessary. Proposed System Requirement List
System requirements are all the capabilities and constraints that the new system must meet for Kudler Foods Frequent Shopper Program. The Requirement List contains two basic requirements. First are the functional requirements which are the activities that the system must...
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